Taxing Times: How Likely Am I To Be Audited?

The video discusses the low probability of being audited by the IRS, which is about 1% annually. It highlights the criteria that may trigger an audit, such as virtual currency and large charitable donations. The video advises not to panic if you receive a letter from the IRS, as it may be an adjustment or verification letter. It also provides a resource for more information on tax issues.

What is the approximate percentage of taxpayers audited by the IRS each year?

• 15%

• 5%

• 1%

• 10%

Which of the following might raise suspicion with the IRS?

• Virtual currency transactions

• Small business expenses

• Regular salary income

• Standard deductions

What should you do if you receive a letter from the IRS?

• Assume you are being audited

• Consider it might be an adjustment or verification

• Panic immediately

• Ignore it

What kind of errors does the IRS automatically correct?

• Major fraud cases

• Unreported income

• Mathematical errors

• Identity theft

What is a common reason for the IRS to send a letter?

• To verify information

• To request a meeting

• To congratulate on tax filing

• To offer a tax refund